There will be an important change to Minnesota Sales taxes starting 10/01/17. First, some background:
Minnesota sales taxes for the Minneapolis metro area (5 counties consisting of Anoka, Dakota, Hennepin, Ramsey, and Washington) included a portion dedicated for transit. This was the .25% for CTIB (County Transit Improvement Board), which oversaw transit projects. This board is being dissolved so the counties are collecting the sales taxes on their own behalf. These taxes will now be collected by the Department of Revenue and paid directly to the counties.
The transit rate will stay the same for some counties; others have decided to increase their rates:
Hennepin County .50%
Ramsey County .50%
Dakota County .25%
Anoka County .25%
Washington County .25%
This poses some challenges with QuickBooks software. If your business has one location and you are currently collecting sales taxes, you would have to make the changes to the rates if you are in Hennepin or Ramsey counties. Otherwise, nothing needs to be done with your software. However, if you delivery to many of these counties or have multiple locations for your business in these counties, you will need to make changes to your software to accommodate the individual sales taxes collected for each county. By doing this, it will be easier to file the sales tax reports to the Department of Revenue.
If you need assistance with this, please contact LFC. Your software should be accommodating this change by Oct 1st, 2017.
